Rishi Nand Kishore Gupta Vs Union of India (Telangana High Court)
Validity of arrest under GST Act upheld where supported by material evidence, Restraint During GST Search Not Equivalent to Arrest; Writ Petition Dismissed Because GST Arrest Was Made Within Constitutional Safeguards; GST Arrest Challenge Rejected Because Production Before Magistrate Was Within 24 Hours; Arrest Under CGST Act Sustained Because Investigation Revealed Prima Facie Incriminating Material; Mere Presence During Search Does Not Constitute Arrest, Telangana High Court Clarifies; GST Arrest Held Valid Because Search, Summons and Arrest Followed Statutory Procedure; No Violation of Article 22(2) Because Formal Arrest Occurred After Completion of Search.
The Telangana High Court upheld the validity of the arrest of the petitioner under the CGST Act and dismissed the writ petition challenging the arrest, transit remand, and judicial remand. The petitioner contended that his arrest effectively began when DGGI officers entered the company premises and restricted his movements during a search operation, resulting in a violation of Article 22(2) of the Constitution. The Court rejected this argument, holding that restraint during a lawful search and recording of statements does not amount to arrest. The record showed that the search concluded in the early hours of 27.02.2026, the petitioner was formally arrested at 5:50 a.m., informed of the grounds of arrest, medically examined, and produced before the Magistrate within 24 hours. The Court further found that the arrest was supported by material collected during the investigation, including allegations of involvement in an organized online gaming syndicate, shell entities, and substantial GST evasion. Accordingly, the writ petition was dismissed.
